Hiring spree beefs up McDonald's recent boom
The fast-food chain's plan to add 50,000 employees is yet another result of its extraordinary business run over the past few years.
The hiring binge is one result of the extraordinary business run McDonald's has engineered over the past few years. When the economy tanked, more people turned to the Golden Arches to dine on a budget. McDonald's added to its bottom line with its successful McCafe line of coffees and other beverages. And smart promotions like the nationwide McRib and oatmeal launches worked well.
Now the company is moving more restaurants to a 24-hour schedule. It's aiming for three to four new hires per restaurant, which would add 7% to its work force in the U.S. for a total of 700,000 employees.
Post continues after this video interview with McDonald's about the hiring spree:
The company's share price rose slightly on the news Monday to $76.42 in morning trading. That's less than a 1% gain over Friday's share price.
McDonald's started the year with a bang, and momentum hasn't slowed. In January, same-store sales in the U.S. rose 3.1% even as horrendous weather in January kept people from visiting stores. In February, sales rose 2.7% from the year earlier.
But even as its business thrives, McDonald's faces increased costs for its raw materials. Analysts expect the prices McDonald's pays for chicken, wheat and cheese will rise 2% to 2.5% this year, The Los Angeles Times reported.
So to bulk up its workforce by 7% in the face of rising costs says a lot about McDonald's confidence in its business moving forward.
The Atlantic notes that the 50,000 employees McDonald's wants is equal to a quarter of the new jobs created in the entire U.S. last month. The company and its franchises are likely to boost spending by more than $518 million in the next year, Fox Business reports, mostly through wages and salaries. That could lead to an extra $54 million in payroll taxes, one study reported.
VIDEO ON MSN MONEY
Here we go with the food police. I wonder how well THAT job pays...
Yes, Americans have gotten heavier, but you can't blame one restaurant for the phenomenon. Hey, they do have salads. What's humorous to me is the one thing I absolutely love from McDs, is the oatmeal. I don't know how well it sells nationally, but that's my favorite weekend breakfast.
Oh yeah, America is really on a roll now....50 thou from McDonald's....all's we need is 25K each from Burger King and Wendy's and we will be on our way to economic recovery.
I am now lost for words....except this....sooooo embarassing.
According to the McDonalds Website this is the "Number of Global Restaurants:
More than 32,000" Now that is globally so ... Big deal it is like hiring approximately 2 people per restaurant.
I'm humble enough to work at Mickey D's. Randall, Mickey doesn't make anyone overconsume, so don't blame the provider.
What this country needs is humility.
Welcome to the flipping burgers economy!
4-23 hrs/week part times to encourage poverty with lower unemployment stats. This country is so corrupt that it will be burnt to ashes by the people supposed to protect it!
"Want me to Super-poor-you?
Thanks for your enslave work!
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
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